If Stephanie buys a laptop for $700 and the maximum she would have paid was $1,000, which of the following is true?
a. Stephanie received consumer surplus of $1,000.
b. Stephanie received producer surplus of $700.
c. Stephanie received a consumer surplus of $700.
d. Stephanie received a consumer surplus of $300.
d
You might also like to view...
On a time-series graph, time is typically shown
A) as an area. B) along the x-axis. C) along the y-axis. D) as an implicit variable held constant.
The quantity of GDP produced per worker, typically measured in quantity of GDP per hour of labor, is known as
a. labor productivity b. capital productivity c. the degree of labor specialization d. the marginal productivity of labor e. the size of the labor force
The demand for beer is more elastic than the demand for milk, so a tax on beer would have a smaller deadweight loss than an equivalent tax on milk, all else equal
a. True b. False Indicate whether the statement is true or false
A temporary adverse supply shock, such as a drought _____
Fill in the blank(s) with the appropriate word(s).